Overtime: Meaning and Purpose
Overtime is pay for hours worked beyond the normal working hours. This calculator turns monthly wages and overtime hours into the extra amount payable.
Factors That Affect the Result
- Monthly ordinary wages
- Working days and hours per day
- Overtime hours worked
- Overtime multiplier set by law or policy
- Whether the employee is eligible for overtime
How the Overtime Is Calculated
Hourly rate = Monthly wages ÷ (Working days × Daily hours)
Overtime pay = Hourly rate × Overtime hours × Overtime multiplier
The multiplier is commonly two times the ordinary rate for covered workers
With monthly wages of ₹26,000, 26 working days and 8 hours a day, the hourly rate is ₹125. Ten overtime hours at 2× give ₹2,500.
How to Use This Calculator
- 1Enter the values in the fields on the left. Use figures from your payroll or policy.
- 2The result updates instantly as you type. Change any input to compare scenarios.
- 3Copy the result or print it to attach to your records.
- 4Check the notes under the result for statutory limits and policy points that may apply.
Why It Matters
Accurate overtime avoids underpayment claims and keeps your payroll consistent with the Factories Act, state Shops and Establishments law and the contract.
Compliance note: Eligibility, rate and weekly limits depend on the law that applies to your establishment. Confirm them before processing payroll.